ECONOMICS
INFLATION
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Fixed Expense
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Discretionary Expense
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Inflation
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Interest
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Detailed explanation-1: -Private banks usually offer fixed-rate car loans while public-sector lenders usually offer floating rates. Gaurav Aggarwal, senior director, Paisabazaar, says, “Fixed-rate car loans are suited for those who prefer a fixed repayment obligation and are content with the current rates.”
Detailed explanation-2: -You must be prepared to pay a higher interest rate on your auto loan because it will be an unsecured loan without an ITR. However, if you are sure of your ability to repay, feel free to negotiate a cheaper vehicle loan interest rate with the lender.
Detailed explanation-3: -Interest effects the overall price you pay after your loan is completely paid off. For example, if you borrow $100 with a 5% interest rate, you will pay $105 dollars back to the lender you borrowed from. The lender will make $5 in profit.
Detailed explanation-4: -8.75% p.a. onwards (floating) 9.20% p.a. onwards (fixed)